Question 1

Microeconomics is the study of _____.

Accepted Answer

A)   global economies
B)   the entire U.S.economy
C)   the decisions made by individuals
D)   the national unemployment rate
E)   productivity in other countriesF) A) and B)
G) A) and D)

Question 2

The work performed to produce goods and services is referred to as _____.

Accepted Answer

A)   land
B)   financial resources
C)   material resources
D)   capital goods
E)   laborF) A) and B)
G) A) and C)

Question 3

Adam Smith is the person who actually organized American business as we know it today.

Accepted Answer

A) True 
 B)False

Question 4

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

Accepted Answer

A) True 
 B)False

Question 5

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

Accepted Answer

A) True 
 B)False

Question 6

Randall Newman distributes rawhide to several different homes.In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods.This represents a(n)  _____.

Accepted Answer

A)   oligopoly
B)   domestic system
C)   system of specialization
D)   factory system
E)   barter systemF) B) and C)
G) A) and E)

Question 7

The economic term used to describe the government's influence on savings and the levels of government spending is _____.

Accepted Answer

A)   monetary policy
B)   fiscal policy
C)   debt policy
D)   recovery technique
E)   recovery guidelineF) B) and D)
G) A) and C)

Question 8

For Starbucks Coffee, managers and employees would be _____.

Accepted Answer

A)   natural resources
B)   capital
C)   information resources
D)   labor
E)   the entrepreneurial resourceF) C) and E)
G) C) and D)

Question 9

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines.This transaction is an example of _____.

Accepted Answer

A)   barter
B)   ancient trading
C)   the domestic system
D)   the factory system
E)   an unequal exchange of goodsF) A) and B)
G) A) and C)

Question 10

The government uses the tax collected from household and businesses to

Accepted Answer

A)   invest in foreign bonds.
B)   invest in foreign corporations.
C)   purchase resources and products needed to provide services.
D)   purchase other nations.
E)   increase consumer income.F) D) and E)
G) B) and D)

Question 11

What do you consider to be the most important challenges that American business faces today?

Accepted Answer

The most important challenges that Ameri...

Question 12

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Accepted Answer

A) True 
 B)False

Question 13

IBM is most correctly classified as a marketing intermediary type of business.

Accepted Answer

A) True 
 B)False

Question 14

All of the following would typically be considered consumer products except a _____.

Accepted Answer

A)   2-liter of Coke
B)   DVD player
C)   prom dress
D)   high-powered drill press
E)   bag of dog foodF) C) and D)
G) B) and C)

Question 15

An oligopoly is a market situation in which there is one producer and a few large buyers.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not one of the four states of a typical business cycle?

Accepted Answer

A)   repression
B)   peak
C)   recession
D)   trough
E)   recoveryF) C) and D)
G) None of the above

Question 17

John Dang is an economics professor in a communist country.Which of the following likely describes the situation John faces?

Accepted Answer

A)   He is treated exactly the same as everyone else in the country.
B)   He would not be a professor because no communist country has colleges.
C)   He would receive special privileges because his skills and knowledge are valued.
D)   As a professor, he would actually be treated less favorably than most citizens.
E)   He would be encouraged to become a factory worker to increase productivity.F) D) and E)
G) C) and E)

Question 18

Organizations that combine raw materials, machinery, and labor to produce goods are called _____.

Accepted Answer

A)   manufacturing businesses
B)   service businesses
C)   merchandisers
D)   market intermediaries
E)   processorsF) B) and D)
G) None of the above

Question 19

Perfect competition is a market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Accepted Answer

A) True 
 B)False

Question 20

A system in which the government decides what goods and services will be produced, how they will be produced, for whom they will be produced, and who owns and controls the major factors of production is referred to as a ____ economy.

Accepted Answer

A)   command
B)   capitalistic
C)   mixed
D)   laissez-faire
E)   communalF) C) and E)
G) None of the above

Exam 1: Exploring the World of Business and Economics

Adam Smith is the person who actually organized American business as we know it today.

Correct AnswerverifiedShow Answer

For Starbucks Coffee, managers and employees would be _____.

Correct AnswerverifiedShow Answer

John Dang is an economics professor in a communist country.Which of the following likely describes the situation John faces?

Correct AnswerverifiedShow Answer

The economic term used to describe the government's influence on savings and the levels of government spending is _____.

Correct AnswerverifiedShow Answer

American Airlines traded eight 747s for twelve DC-10s owned by United Airlines.This transaction is an example of _____.

Correct AnswerverifiedShow Answer

A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job.

Correct AnswerverifiedShow Answer

The work performed to produce goods and services is referred to as _____.

Correct AnswerverifiedShow Answer

All of the following would typically be considered consumer products except a _____.

Correct AnswerverifiedShow Answer

Randall Newman distributes rawhide to several different homes.In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods.This represents a(n) _____.

Correct AnswerverifiedShow Answer

What do you consider to be the most important challenges that American business faces today?

Correct AnswerAnswered by ExamLex AIThe most important challenges that Ameri...View AnswerShow Answer

Microeconomics is the study of _____.

Correct AnswerverifiedShow Answer

Perfect competition is a market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Correct AnswerverifiedShow Answer

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

Correct AnswerverifiedShow Answer

During the peak or prosperity stage of a nation's business cycle, businesses are reluctant to offer new products and services.

Correct AnswerverifiedShow Answer

A system in which the government decides what goods and services will be produced, how they will be produced, for whom they will be produced, and who owns and controls the major factors of production is referred to as a ____ economy.

Correct AnswerverifiedShow Answer

IBM is most correctly classified as a marketing intermediary type of business.

Correct AnswerverifiedShow Answer

An oligopoly is a market situation in which there is one producer and a few large buyers.

Correct AnswerverifiedShow Answer

The government uses the tax collected from household and businesses to

Correct AnswerverifiedShow Answer

Which of the following is not one of the four states of a typical business cycle?

Correct AnswerverifiedShow Answer

Organizations that combine raw materials, machinery, and labor to produce goods are called _____.

Correct AnswerverifiedShow Answer

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The most important challenges that Ameri...
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